It's not that bad. Yes, it's a bit (just a bit) soft, but you have to consider that the bird was pretty cover by branches, and it's not an ideal situation for auto focus.
i have 2 dif readings regarding the shutter speed... i've seen 1/6 and 1/1600... i don't think the real one is 1/1600, if it was a cloudy day, i don't know if you could achieve that speed.
The other thing you should try, is setting the IS mode to "shoot only", and try again with the object in the clear. Again, that bird was among branches, and sometimes the AF just don't focus on what you'd think it would. Use spot metering as well.
PS: jon, here is the picture @ imageshack
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